The executive director of the group, Eric LeCompte, says it is too early to tell if the deal will work.
His comments came shortly after Greece and the Eurozone reached an agreement Sunday after marathon negotiations to find an acceptable solution for Greece’s financial crisis.
Greece and European negotiators agreed to a new financing deal. The $96 billion deal includes new loans to Greece in exchange for economic reforms and austerity measures. Greece can reschedule its debt under the deal but is not entitled to debt relief.
Greece’s parliament and Eurozone parliaments must approve the deal.
“It’s too early to tell if this deal will work, but I’m skeptical. It’s important that they can extend debt payments into the future, but no debt relief and more austerity is a recipe for more of the same for Greece,” LeCompte said.
He agrees with the International Monetary Fund (IMF) position that Greece needs debt relief.
“The IMF is right that Greece needs debt relief to end this crisis. Without debt relief, it’s hard to believe Greece can grow its economy. The Greek people voted clearly against austerity because they’ve seen its impact first hand,” he said.
By Emmanuel K. Dogbevi